Usually, in a Short Sale, you are behind on your mortgage payments, but in the case of a strategic Short Sale, it’s possible for you to begin the process even if you are current on your payments.  However, because your home values have fallen and you still owe more than the property is worth, you’re seeking a strategic Short Sale because you wish to be free of the negative investment.

Is a Strategic Short Sale Better than a Strategic Default?

There are many differences between a strategic short sale and a strategic default.

• Although both a short sale and default will negatively impact your credit rating, the short sale will not affect it as badly as a foreclosure.
• Opting for a short sale will allow you to qualify for a new mortgage in two years instead of seven. But keep in mind, Fannie Mae released a new lending guideline that treats homeowners who strategically defaulting by enforcing the same mortgage qualification rules.
• In Short Sales, many banks, because are now willing to accept payment of a loan at the property’s current market value and consider it “payment in full.” This is preferable to them over the time and costs involved in foreclosing on the property.

Is a Strategic Short Sale Right for You?

Strategic Short Sales may not be the right choice for everyone. If you’re able to afford your mortgage, and can continue to do so over time, pushing for a Short Sale because of slight negative values in your area may not be worth it in the end. Especially if you are happy in your current home and location.  It might be best to continue making mortgage payments and wait for the market to stabilize.

But if you’ve experienced a significant drop in values, and the vacant homes surrounding your property are continuing to drive down your valuations, a strategic Short Sale might be your best option.

What is the Process for Moving Forward with a Strategic Short Sale?

Without the help of a Short Sale Specialist, the Short Sale process can be long and confusing.

A Strategic Short Sale has four main steps you must complete:

1. Hire a Short Sale Real Estate agent
2. List your home to interest qualified buyers
3. Complete the lender paperwork in the required period of time
4. Negotiate the short sale with the lender and have it approved

If you want to ensure your strategic Short Sale has the best chance of success, it’s important that you work with a real estate agent that has extensive experience in the process. If you try to get the short sale approved by yourself, without any guidance, and you are not successful, your lender might overlook your second attempt, whether you have hired a professional or not.

Remember also that without help, a Short Sale may take longer to complete than a regular sale, since lenders spend more time on figuring out the best way to manage the offer paperwork and work through the approval process.

What Do You Gain from a Strategic Short Sale?

Unlike a Strategic Default, when you choose to pursue a strategic Short Sale, you can save time, money and your credit rating, and typically be able to apply for a new mortgage to buy a home in a shorter period of time.

If you need more information about strategic Short Sales in Long Beach, visit http://markshandrow.com/free-book/to download my book: Should I Short Sale My Home? The Homeowner’s Guide to Surviving the Worst Real Estate Market in History.

For questions about the book, feel free to email me at mark@shandrowgroup.com or call me at 562-364-9505.

One Less Foreclosure.

Sincerely,

Mark Shandrow
Real Estate Broker
office 562-364-9505 ext 100
mark@shandrowgroup.com
Shandrow Group
3970 Atlantic Ave., 210
Long Beach, CA  90807
follow my story at http://markshandrow.com

But according to data compiled by Inside Mortgage Finance – a company that polls over 3,000 real estate agents monthly – home sales to first-time homebuyers dipped significantly last month.

What Happened to the Housing Market in July 2010?

In July, first-time homebuyers accounted for only 39 %of the home purchases across the country. That number is down from the peak of 48 % in March and is at the lowest level seen since 2009. As predicted, the government’s initiative to stimulate home sales has worked, but as economists warned, sales slipped fairly substantially in the months following the tax deadline.

The surge in first-time buyer activity last March also came at the same time that the volume of distressed properties reached over 50 % of lender inventory, far above the distressed inventory low of 37 % recorded in November 2009, when loan modification programs and foreclosure delays significantly reduced lender inventory of distressed properties.

If this trend continues, first-time homebuyer activity could fall below 30% in the next few months. Clearly, the tax credit deadline has had a big effect on first-time homebuyer participation.

What Should First-Time Los Angeles County Homebuyers Be Looking for?

As a first-time homebuyer, you should be looking to the most popular forms of distressed home sale transactions – the Short Sale. Since March, short sales have accounted for more than 18 % of housing market inventory. If you choose the right property, you could even receive an almost 25 % discount on the current market value of the home.

With many LA County homeowners continuing to fall behind on their mortgages, and more distressed properties coming onto the market, as a first-time homebuyer you have an opportunity to swoop up the excess inventory.

Short sales remain one of the few bright spots in the residential housing market. With short sales’ time-on-market continuing to decline, from an average of just over 20 weeks in February to more than 15 weeks July, many first-time homebuyers purchased Short Sales in the last month. This activity will stabilize prices over the next few months, and hopefully more homeowners will focus on swooping up these distressed properties and positively affect the non-distressed housing market.

Should You Consider a Non-Distressed Property as Your First Home?

With non-distressed property prices still rising too quickly, you should be contacting a Short Sale Real Estate Agent, to explore your other options. As more REOs come on the market, non-distressed properties will continue to impact pricing into the fall.

If you need more information about the first-time homebuyer incentives and Short Sales in Los Angeles County, visit http://markshandrow.com/free-book/to download my book: Should I Short Sale My Home? The Homeowner’s Guide to Surviving the Worst Real Estate Market in History.

For questions about the book, feel free to email me at mark@shandrowgroup.com or call me at 562-364-9505.

One Less Foreclosure.

Sincerely,

Mark Shandrow
Real Estate Broker
office 562-364-9505 ext 100
mark@shandrowgroup.com
Shandrow Group
3970 Atlantic Ave., 210
Long Beach, CA  90807
follow my story at http://markshandrow.com

Because of my work with homeowners who are interested in avoiding foreclosure through Short Sales, I’ve been featured in Long Beach’s Press Telegram.

You can read the Biz Monday article right here: Biz Monday – Realtor’s E-book explores option of short-sales

If you’re interested in downloading the book: Should I Short Sale My Home? The Homeowners Guide How to Survive the Worst Real Estate Market in History, just click on the book title and sign up to get your free copy.

It’s an honor to be recognized for my work with homeowners who are trying to avoid foreclosure in the Long Beach, CA area.

If you have any questions about the article or the book, feel free to email me at mark@shandrowgroup.com or call me at 562-364-9505.

One Less Foreclosure.

Sincerely,

Mark Shandrow
Real Estate Broker
office 562-364-9505 ext 100
mark@shandrowgroup.com
Shandrow Group
3970 Atlantic Ave., 210
Long Beach, CA  90807
follow my story at http://markshandrow.com

The owner of The White House restaurant, Bruno Serato, is using all of his resources to help fight child hunger in Anaheim, CA. Six days a week, at 4:30 pm, Bruno prepares and delivers almost 150 free meals to the Boys & Girls Club of Anaheim. The donated meals feed kids who are nearly homeless; living in motels and often going without food.

What Prompted Bruno to Begin Feeding the Children?

While visiting Anaheim five years ago, Bruno’s mother, Caterina, went with him to visit the Anaheim Boys & Girls Club where he serves on the board. During the visit, the director of the club told Caterina that most of the kids who stay in the club between 5:00 pm to 6:00 pm are motel children and often go back to the motel without dinner because their families can’t afford it. All the children can do is wait until the next school day to get another meal.

That night, Caterina told Bruno that children should always eat and sent Bruno back to the Anaheim White House Restaurant to prepare pasta for the 100 children.

Since that day, Bruno has prepared and delivered 100 free dinners 6 nights a week, and today because of the economy he can serve  up to 150 free dinners each night.

Bruno serves a total of 47 thousand free hot meals a year to underprivileged children.

Just listen to his story:

Caterina’s Girls Club has donated a 12 passenger van to transport the children from their motels to the club and has also contributed to a free dental clinic as well as piano lessons for the Boys & Girls Clubs members. The children are provided with one-on-one tutoring on a daily basis, which gives them the opportunity to improve their grades. In addition to the tutoring, upgraded computer software was also provided to aide the children in furthering their education.

I was introduced to Caterina’s Club by Janelle Peat of Green River Capital. when she told me the story of Bruno and the kids, I just had to do something. So Shandrow Group donated $250.00 to Caterina’s Club.

If you’re going to donate money to only one charity this year, this is the one.

And if you can’t afford to donate, at least go there for dinner and tell your friends to go there for dinner as well. Keeping Bruno in business helps the kids too.

For every one child Bruno feeds, there is probably 100 that are going hungry.

I’m going to do what I can to keep him in business.

To make a donation, please send your checks to the Anaheim White House Restaurant attention Caterina’s Girls Club For the Boys & Girl Club of Anaheim at 887 South Anaheim Boulevard, Anaheim, California 92805. 714-772-1381.

If you have more questions feel free to contact me @ 562-364-9505 or mark@shandrowgroup.com

One Less Foreclosure.

Sincerely,

Mark Shandrow
Real Estate Broker
office 562-364-9505 ext 100
mark@shandrowgroup.com
Shandrow Group
3970 Atlantic Ave., 210
Long Beach, CA  90807
follow my story at http://markshandrow.com

So What Has Changed?

The motivation of many homeowners who want to start the short sale process is that their mortgage balances have suddenly become higher than the value of their homes. Essentially, they owe more than their homes are worth. Instead of waiting until they are in financial distress, these sellers hope to avoid paying an inflated home loan waiting for their home value to recover, and possibly protect their credit rating at the same time.

What is a Short Sale Hardship in Southern California?

Sometimes a financial hardship is a matter of your lender’s perception. A hardship is defined as a condition that is difficult to endure, either financially or emotionally. It may involve a form of distress, suffering or income loss.

Most lenders will consider the following hardship conditions:

• Unemployment
• Reduced income
• Illness or medical emergency
• Job transfer (voluntary or involuntary)
• Divorce, separation or marital difficulties
• Military service
• Death in the family
• Incarceration
• Increased expenses and excessive debt
• Unexpected repairs or home maintenance

What Are Your Short Sale Options if You Aren’t Experiencing a Hardship?

Your simplest solution is to apply for a loan modification to reduce your principal balance below the home’s market value. If you’re request for a loan modification is rejected, you can move forward with your short sale plans.

The easiest way to start a strategic short sale is to write a strong and honest hardship letter. You need to focus on your reasons for wishing to short sale your home, and how you plan to do everything you can to find a seller that will pay the highest amount possible. You might want to include any upgrades you might complete, or the methods you will use to market your home to qualified buyers.

Here Are Some Strategic Short Sale Tips:

• Hire an experienced strategic short sale listing agent.
• Talk to a lawyer who specializes in Southern California real estate short sales.
• Obtain competent tax advice about possible tax consequences from an Accountant.
• Price your short sale in line with the comparable homes in your area.
• Contact your lender to find out how to fill out and submit your short sale paperwork.

Will Banks Let Sellers Walk Away from Your Southern California Home Without a Hardship?

The answer to this question really depends on your lender. More often than not, the short sale is granted. A hardship is not always necessary because sometimes the bank prefers to dump the property than risk taking it in foreclosure.

Honestly, there is no guarantee that the bank will accept your short sale request, with or without hardship. Every lender is different. And if you are working with two different lenders, your situation is even more complicated.

If you have more questions about the strategic Short Sales, feel free to contact me @ 562-364-9505 or mark@shandrowgroup.com

One Less Foreclosure.

Sincerely,

Mark Shandrow
Real Estate Broker
office 562-364-9505 ext 100
mark@shandrowgroup.com
Shandrow Group
3970 Atlantic Ave., 210
Long Beach, CA  90807
follow my story at http://markshandrow.com

It was a great opportunity for me to take in sessions covering the latest real estate property processing methods and vendor regulations.

I attend these real estate/REO conferences because they offer a great opportunity to network with my peers and clients. I always enjoy an opportunity to meet up with people in person and chat about business.

This year’s conference included three education tracks covering valuations Broker Price Opinions (BPO), REO servicing, and field services.

Most sessions were designed to help real estate agents increase business using CoreLogic. The secondary focus was helping attendees understand expectations from our clients and federal agencies and learn real estate best practices.

Some of the sessions offered this year included:

• Valuation technology and trends
• Insights into working with asset managers
• Eviction and property preservation best practices
• Quality improvement solutions
• How scorecard ratings work and how they can lead to more broker /vendor business

The keynote speaker was James “The Ragin’ Cajun” Carville, Author, Political Consultant, and Commentator.  His keynote was an analysis of past and present politics and he shared his thoughts on current events, the administration of Barack Obama, the 2010 mid-term elections and the challenges facing the major political parties.

Unfortunately, I had to leave the conference early because of a random emergency.  I actually slipped at the event and blew my left knee out. This resulted in a night in the ER and an earlier than expected departure.  The good news is I was extremely well taken care of at the event hotel and the hospital.  Everyone was so amazingly caring and considerate, which made a major injury easier to bear.

Now, I have about eight weeks of crutches to look forward to–at least my upper body will get a good work out.

If you have any questions or feedback, feel free to contact me @ 562-364-9505 or mark@shandrowgroup.com

One Less Foreclosure.

Sincerely,

Mark Shandrow
Real Estate Broker
office 562-364-9505 ext 100
mark@shandrowgroup.com
Shandrow Group
3970 Atlantic Ave., 210
Long Beach, CA  90807
follow my story at http://markshandrow.com

?

I sent a short survey out by email courtesy of SurveyMonkey, to ask the opinion of my Shandrow Group newsletter subscribers. My subscribers consist of REO clients, Short Sale clients and fellow Real Estate Agents.

You can view the results of this survey below.

I’m not surprised at all by this result:

I’m glad to see that the majority of lenders don’t put too much weight on the size of the REO brokerage:

The communications feedback I received was insightful as well:

Overall, I think we’re doing fairly well in regards to how we handle our client base and communications with our clients. I can’t wait to see how the next survey’s results will compare to the data we collected this July.

If you have any questions or feedback, feel free to contact me @ 562-364-9505 or mark@shandrowgroup.com

One Less Foreclosure.

Sincerely,

Mark Shandrow
Real Estate Broker
office 562-364-9505 ext 100
mark@shandrowgroup.com
Shandrow Group
3970 Atlantic Ave., 210
Long Beach, CA  90807
follow my story at http://markshandrow.com

Effective July 8, 2010, a LA city ordinance will help building inspectors identify the banks that own vacant homes and pass out fines if they aren’t kept clean and safe.

As more vacant homes pop up in our neighborhoods and potentially create a public hazard, the city is encouraging residents to call the 311 hotline and report problem properties to ensure lenders are held accountable for safety and clean up.

This ordinance, which affects more than 27,000 homes in LA County, allows the city to levy fines of up to $100,000 against lenders and  financial institutions that seize homes and allow them to fall into disrepair.

Often during the foreclosure process, properties sit in limbo between when the lender issues a mortgage default notice and when the title transfers to the lender. In the past, banks didn’t consider the properties their responsibility until after they repossess the title, but now the City of Los Angeles holds them responsible as soon as they issue a default notice.

As of July 8th, banks must register their inventory of homes in default with the city, which will allow inspectors to easily identify owners when neighbors call in to complain about a property.

The ordinance also allows the city to fine bank owners $1,000 a day per code violation.

You can check out the official ordinance below:

New city of Los Angeles Ordinance effective 7/8/2010

On May 24, 2010 the City of Los Angeles enacted Ordinance 181185 commonly known as the City of Los Angeles Foreclosure Registry Program. The Ordinance takes effect 7/8/2010. The Ordinance is more than a “Vacant Property Registration Act” rather it requires registration of all properties that have a Notice of Default recorded against it. Within 30 days of July 8, 2010 (“effective date”), all properties that have a Notice of Default recorded against it must register with the City.

This requires registration of properties that currently have a Notice of Default registered against it and all properties where a Notice of Default is recorded after the effective date.

The Ordinance requires the lenders and foreclosing beneficiaries to inspect and maintain properties in foreclosure to ensure that they are free from debris, rubbish, trash, and overgrown vegetation, amongst other things. If the property is found to be vacant, or if the property becomes vacant after the Trustee’s Sale, the beneficiary must inspect the property weekly and continue to maintain the property in good condition according to the terms of the ordinance.

If the Property is found to be occupied at any point of the foreclosure process, the beneficiary must inspect the property on a monthly basis. Non-compliance will result in a fine of $1,000.00 per day of non-compliance, not to exceed $100,000.00.

Registration of the property costs $155 per year. A fine of $250.00 per day will be imposed on properties which are not timely registered; the lender or beneficiary is responsible for paying these fines, even if the foreclosed borrower is in possession of the property.

A copy of the ordinance can be downloaded at: http://clkrep.lacity.org/onlinedocs/2009/09-0365_ord_181185.pdf

http://lahd.lacity.org/lahdinternet/ForeclosureInformation/tabid/418/Default.aspx

If you have more questions about Los Angeles’ new Foreclosure Ordinance, feel free to contact me @ 562-364-9505 or mark@shandrowgroup.com

One Less Foreclosure.

Sincerely,

Mark Shandrow
Real Estate Broker
office 562-364-9505 ext 100
mark@shandrowgroup.com
Shandrow Group
3970 Atlantic Ave., 210
Long Beach, CA  90807
follow my story at http://markshandrow.com

Long Beach, CA. – With almost 3,000 Long Beach properties approaching foreclosure, according to foreclosuresradar.com, most troubled homeowners are unaware of the option to short sale their distressed properties with assistance from the federal Treasury Department’s Home Affordable Foreclosure Alternative (HAFA) Program. Offering financial incentives to both the borrower and the mortgage lender, HAFA was established to help families avoid foreclosure.

In a free, downloadable book, Should I Short Sale My Home? A Homeowners Guide How to Survive the Worst Real Estate Market in History, authors Mark Shandrow, CEO of Shandrow Group and Tim and Julie Harris of Harris Real Estate University, aim to provide HAFA and Short Sale information to homeowners early in the foreclosure process, so they can seek out professional assistance from a qualified short sale specialist or counselor, a significant step to stemming the overall rate of foreclosures.

“Missing mortgage payments, or anticipating missing them is stressful and hard to face, but reaching out to talk to a professional while there’s still adequate time to develop a plan of action is key to preventing a foreclosure, and in some cases, avoiding damage to the family’s credit scores,” says Shandrow, whose real estate brokerage firm employs more than six trained short sale specialists.

A qualified short sale real estate agent can be invaluable to navigating a short sale transaction, which often involves completing intensive paperwork, meeting deadlines, and negotiating the terms with the lender in a direct, proactive manner. But Shandrow Group’s relationships with many of the top U.S. banks and real estate companies through its bank-owned properties (REO’s) business is one of the firm’s most powerful tools for brokering successful short sales on behalf of its clients.

One example, PMH Financial, LLC, a financial services company from Denver, enables Shandrow Group to better help clients expedite short sales.  Like Shandrow Group, PMH Financial has strong relationships within the banking industry and direct access to lenders’ key decision-makers.

The melding of Shandrow Group on the local level and a partner like PMH on the national level assures the highest success rate and the most professional service for their clients.

“The Shandrow Group’s proactive and full-service approach shows that if the right representatives are at the table discussing their needs and options, we can facilitate a short sale transaction and avoid a foreclosure,” says Kristy B. Wray, Vice President of Loss Mitigation at PMH Financial.

Educating property owners about HAFA and short sales is central to Shandrow Group’s One Less Foreclosure philosophy aimed at helping homeowners explore alternatives to foreclosures. “While foreclosures are sometimes a reality, they have devastating, long-term effects to the individual, the community, and the market, driving real estate prices down,” says Shandrow. “One less foreclosure means one less homeless family, one less vacant home in the neighborhood and one less problem for our economy.”

The free book, Should I Short Sale My Home? A Homeowners Guide How to Survive the Worst Real Estate Market in History, is available for download at: http://www.shandrowgroup.com. For further information, contact Shandrow Group at 562.364.9595, ext. 100.

# # #
For frequently asked questions about short sales or related information on foreclosures, visit: www.shandrowgroup.com or call 562.364.9505 ext. 100

“As a Short Sale Specialist, I help families in the Long Beach area navigate their underwater mortgages and find suitable solutions to their loan issues. In some situations it’s too late to do anything, but wait for the bank to take their home. But when a client comes to me early enough in the process, we can usually find an alternative that doesn’t leave them out in the cold. – Mark Shandrow -

Other sources of counseling and information for borrowers in default including:

• Americans for Fairness in Lending: www.affil.org
• Freddie Mac’s online guide to avoiding foreclosure: www.freddiemac.com
• L.A. County Department of Consumer Affairs Home Owner Assistance: 1-800-973-3370
• Los Angeles Neighborhood Housing Services: www.lanhs.org
• National Assn. of Consumer Advocates: www.naca.net
• NeighborWorks America: www.ng.org
• U.S. Dept. of Housing and Urban Development: 1-800-569-4287

Despite the fact that you don’t have a documented financial hardship, and are current on your payments, it’s not impossible to submit a Short Sale request to your lender.

Traditionally, to complete a Short Sale you must be in serious financial trouble –  unemployed, getting a divorce, have paying medical bills, or being forced into relocation. The minimum requirement was being at least 2 months behind on your mortgage payments and facing foreclosure.

Today, depending on your situation, your lender may overlook the financial hardship classification and accept your request in good faith.

This is called a strategic Short Sale.

Over the past few years, Shandrow Group has worked with hundreds of families facing foreclosure or considering Short Sales. We have worked with every major lender and credit union in Long Beach, CA and recently, we’ve closed Short Sales for clients who have never missed a mortgage payment, were up to date with their loan requirements, and did not have a documented financial hardship.

Why did lenders approve these strategic Short Sales?

1. Lenders are overwhelmed with Short Sale requests, so they can’t afford to aggressively pursue borrower hardships. The negotiators at the banks are overwhelmed with foreclosures and Short Sales. They just don’t have the time to spend on each file. This gives you the chance to make a case that gets their attention, proves that you have considered the options, and their bottom line, the negotiator will approve it and move on.
2. Lenders weigh the financial options of the return on Short Sales or the chance that a homeowner will walk away from their mortgage. Many lenders look at a borrower who is applying to do a Short Sale and very realistically conclude that either the borrower will request a Short Sale, or they will walk away and let the house go to foreclosure. A Short Sale is definitely a better option for the lender.
3. At Shandrow Group, we’re familiar with the unwritten Short Sale policies of many lenders, and we know how to submit a Short Sale package with a better chance of acceptance. Different lenders have different hot buttons. Some lenders will not accept a Short Sale on a non-owner occupied property. Some banks will accept a Short Sale for a borrower who is current on their loans, while others require that the borrower be behind on their payments. Working with a Short Sale agent will help you figure out these buttons so you get a better chance of receiving your approval.

So, what does this mean? Some lenders are now beginning to look at their bottom line profit of a Short Sale vs. a homeowner walking away from their mortgage.  In other words, most lenders realize that they can’t take on any more foreclosures and will consider homeowners who do the work to put together a convincing Short Sale request.

One difference we’ll see in the near future is an increase in the number of homeowners considering strategic Short Sales.

If you have more questions about the strategic Short Sales, feel free to contact me @ 562-364-9505 or mark@shandrowgroup.com

One Less Foreclosure.

Sincerely,

Mark Shandrow
Real Estate Broker
office 562-364-9505 ext 100
mark@shandrowgroup.com
Shandrow Group
3970 Atlantic Ave., 210
Long Beach, CA  90807
follow my story at http://markshandrow.com